Moscow Warns EU-Russia Trade Could Fall to 'Zero'

Russian Deputy Foreign Minister Alexander Grushko has warned that trade between Russia and the European Union could decline to virtually "zero", continuing a steep downward spiral driven by sanctions and political tensions.

Speaking at a meeting with students and professors at Altai State University, Grushko highlighted the collapse in trade volumes, noting that commerce once valued at $417 billion in 2013 had shrunk to $60 billion in 2024, and is now projected to fall to around $40 billion in 2025. “It is very likely that trade could drop to zero,” he said, according to Russia’s Sputnik news agency.

Grushko accused the EU of employing economic coercion as part of a broader hybrid war against Russia, citing the imposition of nearly 19,000 sanctions. He predicted a complete European phase-out of Russian oil, gas, and nuclear fuel, even for nuclear power plants originally built by the Soviet Union or Russia that remain operational in Europe.

On the same day, the European Union Council announced its 18th package of sanctions against Russia, targeting 14 individuals and 41 legal entities involved in Russia’s energy, banking, and defense sectors. For the first time, a ship captain and a private international shipping company were also sanctioned.

In response, Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), criticized the EU’s approach, arguing that Europe was hurting its own economy more than Russia’s. Writing on Telegram, Dmitriev claimed, “European elites fear peace and remain trapped in hostile rhetoric that is destroying the EU economy with their own hands.”

Dmitriev further asserted that sanctions had become self-defeating, stating that Brussels was depriving its own citizens of stable energy supplies and closing off access to the Russian market for European companies. He reiterated the RDIF’s stance in favor of dialogue over escalation, emphasizing that nearly 30,000 sanctions have already been imposed on Russia, yet have failed to force a change in its national policy.

Meanwhile, Russian President Vladimir Putin floated the idea of energy cooperation with the United States that could, hypothetically, lead to the construction of a new gas pipeline to Europe. Speaking at a press conference alongside Belarusian President Alexander Lukashenko in March, Putin said, “If the U.S. and Russia can agree on energy cooperation, a pipeline to Europe is possible. This would allow access to affordable Russian gas, which could benefit the continent.”

However, such proposals remain hypothetical amid a climate of deep mistrust and diplomatic isolation between Moscow and Western powers.